Musk Eyes Tesla-SpaceX Merger and a Path to Trillionaire Status

Elon Musk is once again contemplating a major merger within his portfolio of companies — this time between two of his largest: SpaceX and Tesla. For Tesla shareholders, however, this may not be welcome news.

According to CNBC, Musk has discussed with colleagues the possibility of merging the two companies, and Tesla employees say many expect the deal to “eventually happen,” with the topic being discussed openly internally. The two companies have already collaborated on various projects in the past.

“In our view, the odds are increasing that Tesla will ultimately merge in some form with SpaceX/xAI over time. The view is that this growing AI ecosystem will focus simultaneously on Space and Earth… and Musk will look to combine forces/technologies over time,” wrote Wedbush analyst Dan Ives in a note to clients earlier this year. It is worth noting that xAI, Musk’s artificial intelligence startup — which includes the Grok chatbot and X.com — merged with SpaceX in February. That deal valued xAI at $250 billion and SpaceX at $1 trillion.